BILL NUMBER: AB 1698	CHAPTERED  05/24/00

	CHAPTER   25
	FILED WITH SECRETARY OF STATE   MAY 24, 2000
	APPROVED BY GOVERNOR   MAY 23, 2000
	PASSED THE ASSEMBLY   MAY 11, 2000
	PASSED THE SENATE   MAY 8, 2000
	AMENDED IN SENATE   MAY 1, 2000
	AMENDED IN ASSEMBLY   JULY 2, 1999

INTRODUCED BY   Assembly Member Campbell

                        MAY 10, 1999

   An act to add Sections 36424.1 and 37207.1 to the Water Code,
relating to water, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1698, Campbell.  Santa Margarita Water District.
   (1) Existing law, except as otherwise specified, requires a
California water district to include in its annual estimate of the
amount required by that district to discharge all of its obligations,
an amount that is sufficient to pay (a) the principal of, and
interest on, general obligation bonds and warrants of that district
for any improvement district within the district as that amount
becomes due, and (b) the operating expenses for that improvement
district.
   This bill would authorize the Santa Margarita Water District, for
the purpose of making that annual estimate, to designate 2 separate
areas within a prescribed improvement district, as specified.  The
bill would require the board of the district, that determines to
designate those 2 areas within  that improvement district for which
the district has issued general obligation bonds, to submit to the
county auditor and the board of supervisors an estimate, in writing,
of the amount needed to be raised by assessment for the payment of
the amount allocated by the board to each benefit area for the
payment of the principal of, and the interest on, the bonds issued
for that improvement district and would require the board of
supervisors to levy an ad valorem assessment upon all lands within
each designated area that is sufficient to raise the amount set forth
in the estimate of the board.
   By imposing duties on the board of supervisors in connection with
the levy of the assessment, the bill would impose a state-mandated
local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (3) The bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 36424.1 is added to the Water Code, to read:
   36424.1.  (a) This section applies only to the Santa Margarita
Water District.
   (b) The Legislature finds and declares both of the following:
   (1) In 1978, the voters of the Santa Margarita Water District
authorized the sale of bonds for its improvement district number four
in which the bond proceeds are available for water and sewer
facilities.
   (2) In 1998, the Capistrano School District created a Mello-Roos
Community Facilities District in which the bond proceeds are
available for water, sewer, roads, and other facilities for a portion
of the area to be served by the improvement district.
   (c) It is the intent of the Legislature to allow the Santa
Margarita Water District the flexibility to establish equity with
regard to the manner in which the district's water and sewer bonds
are repaid, recognizing that a portion of the water and sewer
facilities for the improvement district area will be financed by
bonds issued pursuant to the Mello-Roos Community Facilities Act of
1982 (Ch. 2.5 (commencing with Sec. 53311), Pt. 1, Div. 2, Title 5,
Gov. C.), instead of all water and sewer facilities being financed by
the district's water and sewer bonds.
   (d) For the purpose of making the annual estimate of the amount
required to pay the principal of, and interest on, general obligation
bonds of the Santa Margarita Water District for improvement district
number four pursuant to Section 36424, the board of the district may
designate two separate areas within the improvement district, with
one area financed by the school district's bonds under Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of
the Government Code and the other area not so financed.
   (e) If the district exercises the authority authorized by this
section, the amount of principal and interest allocated each year to
the area without the bonds issued under Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code (1) shall not be less, to the extent possible, than the amount
needed to repay the principal and interest actually owed on the water
and sewer bonds if that amount is spread uniformly across all of the
assessed value of property within the improvement district, and (2)
shall not be more, to the extent possible, than that amount that
would have been allocated if (A) all water and sewer facilities had
been financed by the water district's water and sewer bonds, subject
to a limit of the amount of water and sewer bonds actually
authorized, and (B) the entire improvement district was responsible
to repay these amounts.
   (f) The board shall not designate separate areas unless it
receives a report from an independent financial consultant or
engineer that the designation of the proposed areas and the
allocation of the estimated amount required to repay the principal
of, and interest on, the bonds to the areas, in accordance with
subdivision (e), will not adversely affect the board's ability to
levy ad valorem assessments that will be sufficient to pay the
principal of, and interest on, the bonds and the board determines
that the designation of the areas and the allocation of the amount
will not be adverse to the interests of the holders of the bonds.
Notwithstanding subdivision (e), if the report indicates that the
allocation described in subdivision (e) will adversely affect the
board's ability to levy ad valorem assessments that are sufficient to
pay the principal of, and interest on, the bonds or that that
allocation may be adverse to the interests of the holders of the
bonds, the district may designate two separate areas within
improvement district number four in accordance with subdivision (d)
and levy ad valorem assessments in amounts necessary to avoid those
adverse effects.
  SEC. 2.  Section 37207.1 is added to the Water Code, to read:
   37207.1.  (a) This section applies only to the Santa Margarita
Water District.
   (b) If the board determines pursuant to Section 36424.1 to
designate areas within an improvement district for which the Santa
Margarita Water District has issued general obligation bonds, the
board shall submit to the county auditor and the board of supervisors
an estimate, in writing, of the amount of money required to be
raised by assessment for the payment of the amount allocated by the
board to each area for the payment of the principal of, and interest
on, the bonds issued for the improvement district.  Upon receiving
the estimate, the board of supervisors shall levy an ad valorem
assessment upon all lands within each designated area that is
sufficient to raise the amount set forth in the estimate of the
board.
   (c) The district shall reimburse the county for any additional
costs in carrying out the provisions of this section.
  SEC. 3.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
as a result of the infrastructure requirements applicable to the
Santa Margarita Water District.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
are the result of a program for which legislative authority was
requested by that local agency or school district, within the meaning
of Section 17556 of the Government Code and Section 6 of Article
XIIIB of the California Constitution.
  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to more equitably assess property in the Santa Margarita
Water District at the earliest possible time, it is necessary that
this act take effect immediately.
